Viet Nam’s economy is projected to grow by 6.6 percent in 2025, bolstered by a robust first half of the year in which growth surged to 7.5 percent, according to the World Bank’s latest Viet Nam Economic Update report. This strong performance was driven primarily by early-year export momentum. However, growth is expected to moderate in the second half as export activity returns to normal levels. Given its reliance on external markets, Viet Nam remains vulnerable to global economic slowdowns and reduced demand from key trading partners. Additionally, uncertainties in global trade policies could dampen both business and consumer confidence.
Looking ahead, medium-term growth is forecasted to ease to 6.1 percent in 2026 before recovering to 6.5 percent in 2027. This rebound is expected to be supported by a revival in global trade and Viet Nam’s continued strength as a competitive hub for manufacturing. To maintain growth and safeguard against external shocks, the World Bank recommends increasing public investment, managing financial-sector risks, and implementing structural reforms.
According to Mariam J. Sherman, World Bank Division Director for Viet Nam, Cambodia, and Lao PDR, Viet Nam’s relatively low public debt gives it the fiscal flexibility to invest in infrastructure and job creation. She emphasized that advancing structural reforms—particularly in essential services, green development, human capital, and trade diversification—will be key to mitigating global risks and sustaining long-term growth.
This edition of the report also places a special focus on the development of high-tech talent in Viet Nam. As the country strives for high-income status by 2045, building a skilled workforce capable of supporting innovation will be critical. This includes not only expanding the pipeline of STEM graduates but also cultivating a core of advanced researchers and innovators who can drive scientific breakthroughs and commercialize new technologies.
To meet these goals, the report highlights the need to increase both public and private investment in research and development (R&D), which currently lags behind that of more developed regional economies. Expanding the number of PhD-level faculty members, strengthening collaboration between universities, industry, and government, and improving the overall research ecosystem are essential steps to enhance Viet Nam’s innovation capacity and ensure a work-ready, future-focused workforce.
Taking Stock – Viet Nam Economic Update is the World Bank’s biannual report series offering analysis on Viet Nam’s economic performance and strategies for sustainable growth.
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